MEDA Extremely Disappointed With the Decision Not to Enhance Missouri's Natural Gas Infrastructure

JEFFERSON CITY, MO--(Marketwired - Jul 11, 2013) - Today the Missouri Energy Development Association (MEDA) announces its extreme disappointment with Governor Nixon's decision to veto SB 240, legislation that would have enhanced Missouri's natural gas infrastructure and created jobs, all the while protecting consumers. Missouri's natural gas investor-owned utilities have been providing safe, reliable, and affordable service in the state for 534 years collectively. SB 240 received overwhelming support during the 2013 legislative session by a vote of 26-6 in the Senate and 110-45 in the House.

As recently as July 5th, Illinois Governor Pat Quinn signed into law legislation that will allow their state's natural gas utilities to accelerate infrastructure replacement. Governors in Maryland and Indiana signed similar measures in the month of June. In addition, the National Association of Regulatory Utility Commissioners, the organization representing state public service commissioners, will be considering a resolution during their national meeting later this month that will encourage natural gas line investment and the expedited replacement of high-risk distribution mains and service lines.

It is important to understand that SB 240 would have made no changes to the type of costs that can be recovered through the regulatory mechanism known as "gas ISRS" or to the current level of regulatory oversight. Instead, the enhancements to gas ISRS in SB 240 would have enabled natural gas utilities to file general rate cases less frequently and would have subjected them to a new and proportionally lower overall cap. Since the processing of a rate case can cost consumers millions of dollars, less frequent rate cases truly benefit consumers. In addition, SB 240 would have more accurately reconciled the uncollectible levels in between general rate cases and would have ensured for the first time that consumers do not overpay for the actual cost of those uncollectibles. The truth is the provisions in SB 240 would have continued to enhance the safety and reliability of our Missouri natural gas system to the benefit and protection of all consumers at a very conservative, well managed cost.

About MEDA: Organized in 2003, the Missouri Energy Development Association (MEDA) is the association of Missouri's Investor-Owned Utilities and their strategic partners. Our members serve nearly 4 million customers, invest over $1 billion in-state annually, and employ over 11,500 Missourians while providing the electric, natural gas, and water services integral to the safety and prosperity of all Missourians.